Ch. 14:(Three of these-10 points each)
1. Causes of the stock market crash. - stock market was booming up until 1929. October 29 it crashed. The main cause was the fact that stocks were overpriced. Companies weren't making money because they were overproducing, and nobody was buying anything because they were in such debt. Pooling was another cause. Rich guys getting together and buying up cheap stock, and they would sell to the unsuspecting public, this was legal then. It created a demand for the stock while the company was loosing money. Buying on credit was a bad thing. For 100 you could get 1000 worth of stock. A lot of the prices were based on borrowed money . the Federal Reserve did very little. Raised the interest rates, and that caused people to quit borrowing money which hurt the economy.
2. Causes of the Great Depression. - The stock market crash. Factories and Farming were overproducing, and they weren't able to sell anything. Companies had to lay people off. People were in massive debt so they quit buying products, companies weren't making money. Most people were poor. they couldn't really afford anything. The terrif policy. Hoover passed a very high terrf. It cut world trade down. People could only buy american products. Lower terifs would have been better because people would have been able to buy our products. No one was buying anything outside of the US.
3. Describe the problems that people had in the cities and the rural areas. - Citys, people lost their homes,
people rushed to banks and took out their money. People weren't able to get their money out.
Los their jobs, and homes. They had to go to soup kitchens for meals, and bread lines for food.
People had to live with other family.Kids had to go to work. A llot of kids dropped out of college and
high school to help kids make money. Teens hopped on trains to go find work, and basically
lived as hobos. Sold apples and things at apple stands just to get enough money for food. Hoovervilles
were set up to help people have homes. They set it up in backlash of Hoover. In the country the
farmers planted more crops, and that caused prices to go down, and they didn't get money. They had food,
but they couldn't pay their mortgage.
4. Describe what Hoover did to help with the Great Depression.-Hoover didn't do a lot. the Boulder Dam
project. 700 million dollars was spent. Helped provide flood control and electricity in the southwest part of the US. Helped pass the Federal Farm board to help raise the price of crops. Established a national credit coorporation. This lended money to banks to help them not close down. Helped pass Federal Home Loan and Bank Act. Helped refinance homes. Made it easier for people to get loans, and to extend loans. Reconstruction Finance Coorporation. Ex. of trickle down theory. Gave billion of dollars to governments and banks and buisnesses to help create jobs for people. constructon jobs likebuilding dams. Some states used it to give money to people for welfare.
5. What made Hoover so unpopular during his presidency? - His political philosiphy of laissez-faire(hands off. the government was gonna stay out of buisness and out of peoples lives), and trickledown theory (tax breaks&loans to big buisnesses, and that would eventually help middle&lower classes by getting jobs.) These took a long time, and this made people angry. Bonus Expeditionary Force. WW1 Veterans were going to be paid a bonus from the US Govnt in the 40's. They thought maybe the govn't could give them the money early. They marched to DC. at first Hoover was nice, then congress said they weren't going to get their money early. Some left, others stayed..Hoover brought out military, and forced the veterans to leave DC.
Ch. 15:
Two of the following-Ten points each:
Describe the cycle of the Great Depression. -Buisness cycle-in times of depression, companies aren't making money because they were overproducing. People were in massive debt because of buying on credit. People got laid off. People wont have money, and buisnesses won't make money. Very hard to get out of the cycle. It can go either down or up. It was down. Vicious cycle.
What was the New Deal(1st and 2nd) and it's goals(3 R's)? New Deal was Roosevelts plan to get us out of the depression. Relief, Reform, and Recovery. Relief-relief for the needy. was designed to help people who were needy. Reform-financial institutions of US fell apart, stock market crashed, banks closed. A lot of programs passed with this were to help get everything back on track. Recovery-economic recovery. Everything that happened during the New Deal falls back to recovery. First new deal if from 33-35. Second is from 35-38. first had more focus onhelping banks and buisnesses. Provide jobs and relief for the poor, and to help the banks and stock market get back on track. Second new deal was aimed more at individual people. Labor laws wre passed. Established social security system. Overall it was just to try to get us out of the depression.
Why did people criticize the New Deal? - People thought he was trying to make our country socialist and communist. Republicans thought he was going too far, and having too much power. Thought he was abandoning the laisezz-faire approach to government. People that some of his acts were unconstitutional. Thought he was doing too much deficit spending. On the other hand there were people like Townsend that crticized rosevelt. Huey Long had a "share our wealth" program. Take from the rich, give to the poor. Wanted to re-distribute weath to everyone. Because he was criticzed so much, he was doing just enough. Said that he saved democracy.
Why was FDR upset with the US Supreme Court and what did he do to try to solve this issue?-Two New Deal laws that were declared unconstitutional. Took a few years, but they were declared unconstitutional. Thought the supreme court would continue to declare other acts unconstitutional. Many Justices were very old, he created the Court Packing plan, where he could add one new justice for every Justice over 70. That was shot down by congress, and people of the general public. People questioned his motives for that.
Four of the following-Ten points each:
How did the New Deal help:
unemployed--Reconstruction Finance Coorporation-gave loans to state&local govnts. and banks/buisnesses to help constuct jobs for people. Construction projects mainly. Allowed states to give out welfare checks to people. Civiliann Conservation Corps-gave people 18-25 jobs to plant trees, and do outside works. Only way to get a job here was if your family was poor. Had to give 25 dollars out of 30 to their families. Fedeeral Emergency Relief Act-gave money to the unemployed. gave construction jobs. Public Works Administration-good ex. of priming the pump. Gave a lot of jobs to peopole to make dams, and other things. 70% of schools built in 1933-39, 30% of hospitals. Civil Works Administration-largest org for about 6 months. was shut down becaue it was so costly. In 6 months they made a lot of things. Buildings, bridges, roads. Works Progress Administration-designed to make work for anyone. Construction, and was different because it offered jobs for artists, writers, musicans, and historians. They were paid to paint pictures, to put on concerts, and write boks. National Youth Administration-gave jobs and job traiing to highschool and college kids.
farmers-Agricultural Adjustment Act-paid farmers to plant less. Restricted production. Goal wasto reduce the crop surplus so prices would go up. Slaughtered 6million pigs, plowed under cotton fields, burnt crops. Was very cruel, and declared unconstitutional. Replacd by Soil Conservation and Allottment Act-educated farmers on how to make sure the dust bowl wouldn't happen again. Plant tree on terraces, make terraces, rotate crops. Paid farmers to reduce production. Tennesee Valley Authorit-provided thousands of jobs to people in the area. Build dams, and other things to help stop flooding, and provide electric power, set up recreational activities, and benefit farming. Rural Electrification Administration-designed to get electricity to the country. Farm Security Administration-passed to help the poor farmers who were affected by the dustbowl. Help farmers getmoney to purchase farms, and other things that they would need. Took a lot of pictures. Dorthea Lang. These pictures were to show Americans n the cities how tough the people in the ountry really had it.
factory workers/labor-National Industry Recovery Act-fair codes. Tried to make buisnesses be fair to their workers. Decent hours of work, pay, and to make sure prices didn't skyrocket. The Blue Eagle was the symbol. If they followed these codes they would put them in windows, and if one had a blue eagle, that resturant would be choosen to eat at, and the other would feel pressure from loosing buisness so they had to put the blue eagle up to. Guarantee workers the right to unionize. Was declared unconstitutional in 1935. National Labor Reations Act/Board (Wagner Act)-would conduct elections for labor unions. Would investigate any unfair practices. Make decisions on whether there were problems or not. Fair Labor Standards Act-established a nationwide minimum age, 40 hour workweek, time and a half for overtime. Set up child labor laws.
young people-Fair Labor Standards Act-got rid of child labor. CCC-men 18-25. construction work. National Youth Administration-college/highschool kids to have job experience/training, and to give them jobs. elanor roosevelt was high on this one.
banks-Federal Deposit Insurance Coorporation-insured peoples money in banks. Up to 1,000 back then. Passed in response to all the bank failures. It guaranteed that if the bank closed and you lost your money you would get your money back. Banking Act of 1935-made the FDIC a permanent agency. Strengthened the role of the Federal Reserve which made the banking safer.
stock market-Securities and Exchance Commision-regulated the stock market. To make sure everyones stocks were safe. Required people to be truthful. Federal Securites Act-designe to make the stock market a safer place. Prohibited companies from being deceitful or any type of fraud.
businesses-affected by things that affected the factory workers. NIRA, had to give into labor unions. Were hurt a little by some of the new deal programs. all new deal programs were created to help buisnesses.
home owners-Home Owners Loan Coorporation-designed to stretch out how long you could make payments. Tried to help people keep their homes. Helped the common person be able to afford a home. Federal Housing Administration-helped poor people get money to get a house. Instead of requiring 10% down only requires 1% down. US Housing Authority-designed to help build low-cost homes. Tried to make these low-income homes decent.
elderly-Social Security Act-designed to help the elderly. Gave everyone a social security number. As you were paid at your workplace, money would be taken out and put intyour account and you could get it out after retireent, once a month.
Native Americans-had been treated terribly throughout history. Dawes Act tried to americanize native americans. wanted them to farm like any white american would . 160 acres for each family. Indian Reorganization Act was designed to undo all theprevious injustices. Gave land ownership back to them. and Tribal Ownership. allowed them to educate them how they wanted. Gave them incetives to let them make money. Still around today.
Two of the following-Five points each:
Key terms:
Hundred Days-first 100 days of Roosevelts Presidency.Pledged to do a lot of things. 15 bills were passed.
fireside chats-roosevelts speechs he did on the radio. made it very personal, talked like a normal person, made people feel as if he were talking directly to them.
priming the pump- government spends a lot of money creating jobs to try to get the economy going again.
deficit spending- government spending more money than is being taken in.
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